The static VAR compensator (SVC) market was valued at USD 643.6 Million in 2014 and is estimated to reach USD 807.7 Million by 2020, at a CAGR of 3.8% between 2015 and 2020. The base year used for study is 2014 and the forecast period considered is between 2015 and 2020. This report provides a detailed analysis of the SVC market based on type, component, vertical, and region. It has been estimated that the thyristor-based SVC solution would hold a large share in the static VAR compensator market. However, the market for renewable vertical, which includes wind power and solar farm, is expected to grow at a high CAGR between 2015 and 2020

The research methodology used to estimate and forecast the SVC market begins with capturing data on key vendor revenues through secondary research. The vendor offerings are also taken into consideration to determine the market segmentation. The top-down procedure was employed to arrive at the overall market size of the global static VAR compensator market from the average MVARs installed globally and the average price of SVCs in USD/MVAR. After arriving at the overall market size, the total market was split into several segments and sub-segments which are then verified through primary research by conducting extensive interviews with key people such as CEOs, VPs, directors, and executives. This data triangulation and market breakdown procedures have been employed to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments.

This report provides valuable insights regarding ecosystem of this market such as product manufacturers and suppliers, distributors, energy consultants, component suppliers, engineering procurement and commissioning (EPCs), and standardization and testing firms. This study answers several questions for the stakeholders, primarily which market segments to focus on in the next two to five years for prioritizing the efforts and investments.

The static VAR compensator (SVC) market was valued at USD 643.6 Million in 2014, and it is expected to grow at a CAGR of 3.8% between 2015 and 2020. The increasing demand for renewable sources of energy and replacement of aging power infrastructure in developed geographical regions are some of the factors driving the static VAR compensator market positively.

Among the types of SVC solutions available, MCR based SVC is expected to grow at the highest rate in the static VAR compensator market. The presence of features such as high reliability, small dimension, its ability to sustain instantaneous voltage to avoid generator breaking, increased capability to transfer power, low harmonics and faster response time, as compared to thyristor-based SVC are the key reasons behind this growth.

The market for renewable vertical is expected to grow at a high CAGR during the forecast period. Increase in the number of investments made by investors in the renewable sector in countries in the Asia-Pacific, such as India, Japan and China, and also in Africa is a key reason behind the sharp growth.

The market in the APAC region is expected to grow at the highest CAGR during the forecast period. The key reason behind a sharp growth in the APAC region can be attributed to the development of industrial sector and power infrastructure in this region. With the increase in investments, large numbers of plants are expected to be set up, which require SVC solutions for power transmission and distribution, which is directly expected to impact the growth of the overall static VAR compensator market.

Lack of awareness among companies regarding the benefits of MCR-based SVCs is one of the key restraining factors in the static VAR compensator market. There is reluctance from end customers to adopt or to switch onto SVC because of many reasons, and one such reason among them isless knowledge about the technology. This unwillingness is mainly a result of ignorance about the benefits of MCR-based SVC. Since the inception of this technology, not much has been done to show the usefulness of this technology. In fact, MCR-based SVC devices have great potential to save the power system from the threat of collapse which in turn reduces the risk of revenue loss and penalties. However, the wide opportunities of SVC in applications such as being used as high voltage boosters for different purposes in the railways sector is responsible for the impressive growth of this market.

Key players in this market are focused on expansions and new product launches to increase their revenue. ABB Ltd. is one of the leaders in the static VAR compensator market. The company focuses on contracts and expansions to maintain their presence in the market all over the world. The company has a huge customer base with long-term contracts. For instance, in December 2014, ABB installed and commissioned four SVCs as part of a project given by Electric Transmission Texas, LLC (Austin). Similarly, ABB has also recently entered into a joint venture with Hitachi to provide HVDC solutions in Japan.

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